How to create a simple customer growth model in Arithmix for a startup!

[vincent.lister]

In this simple knowledge base post I’m going to show you how to create a simple customer growth model for our new startup!

Let’s assume we are starting a new company with 100 customers initially and we expect a growth rate of 3% month on month. The question every investor wants to know the answer to is:

How many customers will you have in 6 months time?

To do this follow the steps below:

1. Create a new table with a measure called initial customers and give it the value 100
   

   

2. Add a new measure to this table called growth rate and give it the value of 3%
   

   

3. Create a new Table and create a measure called Customers.

4. We are going to use the formula COMPOUND. The syntax for it is COMPOUND(Growth Rate, Dimension, Initial value)
5. Write the following formula in the Customers Cell as shown below =COMPOUND((1+Table1.Growth Rate),Time.Month,Table1.Initial customers)

6. You should see the following table below:
   
   

In 6 months time we should have around 116 customers! Win!